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A study on Market Potential demand of coconut oil

INTRODUCTION
This project is concerned with the study of the market potential of coconut oil. This project work is carried out in KERAFED, a public sector company engaged in the production of coconut oil Market potential of coconut oil means the maximum possible sales of coconut oil in the market. The study is an attempt to analyze the market potential of coconut oil. This study helps to know about the existing market demand of coconut oil. The study is done to known the various brands of coconuts oil used by the respondents. This is used to analyze the market potential of coconut oil. This may help in the marketing and production of good quality coconut oil of KERAFED LTD. This particular company is selected for the study because it is a growing company.

1.1 STATEMENT OF THE PROBLEM


Indian coconut oil industry is witnessing a sea change over the last few years. After the opening up of Indian coconut oil industry, the

competition the market is on high ends. The single most consequence was the emergence of private sector companies. At this backdrop, it becomes relevant to study the market potential of KERA oil products in the Kerala market.
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A study on Market Potential demand of coconut oil

1.2 OBJECTIVES OF THE STUDY

Primary objective
The primary objective is found out market potential of various coconut oil brands and feedback on the product.

Secondary objective
1. 2. To ascertain the brand preference of coconut oil To collect opinion from various respondents about the quality of coconut oil manufactured by KERAFED 3. 4. To collect opinion about the pricing of coconut oil. To examine the factors influencing consumer choice

1.3. SCOPE OF THE STUDY


This study helps to ascertain the present market position of the company and help the company in its efforts of creating demand of the product. This study helps to collect information about the preference of respondents and factors which makes them to choose the brand, and the Company can concentrate more on these factors to increase the brand image. The company can formulate a price policy by taking into consideration the opinion of the respondents about the current price.

University Institute of Technology , Kollam

A study on Market Potential demand of coconut oil

RESEARCH METHODOLOGY
Research methodology is a process by which the researcher can solve the research problem systematically. It may be understood as a science of study how research is done scientifically. A detailed discussion was carried over with the methodology as part of study market potential of coconut oil. In this unit the research discussed about the research design, researched approach, and research instrument and research period. a) Research design Research design is a framework that helps in the collection and analysis of data. The research chooses for this study is design was used to compare extensively the different brands of coconut oil available in the market. b) Research Approach The survey is conducted with the help of questionnaire for data collection. C) Research Instrument The research instrument use for the study is questionnaire. There are open end and closed end questions. d) Research Period The duration of the study was from 08-11-2011 to -07-12-2011

University Institute of Technology , Kollam

A study on Market Potential demand of coconut oil

1.5. DATA SOURCE


The data sources used for this study through data collection of primary and secondary data. PRIMARY SOURCE Primary source are those, which are collected afresh and for the first time, and this happened to be original in character. The data for this study is collected through survey among peoples in two districts. SECONDARY SOURCE It includes those data, which are collected for some earlier work and are applied or usable in the study. In this study the research has presently undertaken. The data for collected from the secondary sources are previous researches, company catalogues, Internet sites, company profile etc.

1.6 SAMPLE DESIGN


a) Sample unit Sample unit is the element or elements available for selection at some stages of sample process i.e. a decision has to be taken concerning a sampling unit before selecting a sample unit may be geographical one such as state, districts, villages etc. In this research it is considered coconut oil users from two different districts of Kerala.

University Institute of Technology , Kollam

A study on Market Potential demand of coconut oil

b) Sample Size
The sample size is 100 respondents from two districts.

c) Sampling Procedure
In the sampling procedure the research must decide the type of sample that is the researcher must decide about the techniques to be need in selecting the item for sampling. Simple random sampling procedure, the simplest probability sample procedures, is utilized by 90% of businesses. The technique is preferred because it is a compute objective method for sampling a population and statistically it is sounder. procedure also provides more accurate result. The probability

1.7. LIMITATIONS OF THIS STUDY


This study was conducted only in two districts of Kerala owing to time and cost. 1. Among all respondents surveyed some of the respondents were not willing to give the details of the product. 2. The opinion of the respondents may or may not be biased.

University Institute of Technology , Kollam

A study on Market Potential demand of coconut oil

1.8 CHAPTER SCHEME


The introduction chapter includes statement of problem, objectives of study, research methodology, data sources, sample unit, sample size, sampling procedure, and the limitations of the study. The second chapter consists of industry profile, this help to understand about the current of the product in world, our country and state. The third chapter consists of company profile that helps to understand about the company Kerafed Ltd. The fourth chapter consists of data analysis and interpretation, analyze and interpret the data collected from various respondents. The fifth chapter consists of findings, which provide the result of the analysis of collected data, and we understood about by interpreting the data.

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A study on Market Potential demand of coconut oil

PROFILE
2.1 INDUSTRY PROFILE
1) GLOBAL SCENARIO When we talk about industry, we refer to a vast network of different enterprises making goods providing service for the community. Many large business houses are producing coconut oil in the world wide. More than eighty percentage of ten million hectares are under coconut cultivation in the world is in South and South East Asia . In showing the country wise area and production of coconut in different coconut growing countries of the world. It is noted Philippines is the leading followed by Indonesia and India. These countries account for eighty percentage of the total area and production under coconut. Available information shows that India is the third largest coconut producing country in the world with an area of 1.2 millions hectares, the producing of coconut oil in India places at around 6.9 millions. Bulks of production are Kerala, followed by Kama taka, Tamilnadu and Andrapradesh . Among the coconut growing states in the country Kerala, Kama taka, Tamilnadu and Andrapradesh together account for more than ninety

percentage of the total area. The socio-economic development of Kerala is


University Institute of Technology , Kollam

A study on Market Potential demand of coconut oil

much for 9.29% of other total income and 26.2% of the total agricultural income of the state. About the million people depend directly or indirectly on account cultivation and industry lively hood. During the year 1950-51, Kerala contributed 65% of Indias total coconut production. But over the years, its share in the total national output has been declining fast. In 199596 through Indias coconut production touched 136968 million, Kerala contributed only 40% of this total output. In Kerala there are many coconut oil extraction industries throughout the state. Edible oil sector has been one of those commodity sectors that have been in news through out the year. In fact every now and then the industry has been pleading the government for protection from cheap imports. The recent duty hike is third such hike in a year. Every time the duty hike has been concurrent with excess production and drop in prices of palm oil in the international market thus making and hike ineffective. Presently Malaysia is the largest producer of CPO (Crude Palm Oil) in the world followed by Indonesia, while India is largest importer of edible oil. These two leading palm oil exporters have designed their export duty structure such that they could retain the Indian market. As India has following duty structure for edible oil.

University Institute of Technology , Kollam

A study on Market Potential demand of coconut oil

2) NATION SCENARIO Looking back at the history of Indian edible oil industry we find that we had set a target of achieving self-sufficiency in edible oil and launched Golden Revolution with much fan fare in 1992-93 But soon after that the countries imports started rising and soon India became the largest importer of edible oil. From a near self-sufficiency level of 97% in 1992-93 we have fallen to 55% level last year. Our oil imports have been constantly increasing since 1992-93. Some of the main reason has been increase in edible oil consumption, stagnating oil seeds production and falling international prices. In addition to this the differential duty structure in favor of refined oil led to an upsurge in edible oil imports. When the Golden revolution was launched many oil solvent extractors set up the extraction units as they saw huge potential the market. But with oil seeds production not catching up with the demand plus lower per hectare yield of just 850kgs compared to the world average of 1600 Kg s of oil seeds, made the country resort to external sources. Presently the country has more than 15000 oilseeds crushing units more than 600 solvent extractors, more than 400 vegetable oil refiners and more than 190 Vanaspati oil units. All these are working at below 40% capacity utilization. With such a low capacity utilization the solvent extraction industry is in doldrums, many of these unites have already shut down.
University Institute of Technology , Kollam

A study on Market Potential demand of coconut oil

The country has been importing mainly from Indonesia and Malaysia. It started with refined oil, RBD oil as there was need to meet the demand supply gap. But the imports were so cheap that imports crossed many times the gap and this lead to the current plight of the solvent extraction industry. Moreover all these imports led to increase consumption of palm oil its derivatives, while other oil seeds and oils consumption is declining. Most affected are Soya bean, cottonseed, rice bran, rapeseed etc. Their demand has not grown in recent years due to these cheap imports. This is harming oil seed farmers, as they are not able to see these in the market due to lower realizations. Many have already shifted other crops and many are planning to do so in the near future. If these imports continue the oilseed industry is likely to die very soon. Taking into consideration all these factors plus seemingly a selfish motive of increase its customs collection, the government has been taking these duty hikes from time to time. But every time the hikes are more than offset by drop in international prices.

3) STATE SCENARIO
Available information shows that India is the third largest coconut producing country in the world with an area of 1.2 millions hectares, the production are from Kerala, followed by Karnataka, Thailand and Andrapradesh.

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A study on Market Potential demand of coconut oil

Among the coconut growing states in the country Kerala, Karnataka, Tamilnadu and Andrapradesh together account for more than ninety percentage of the total area. The socio-economic development of Kerala is much dependent on the fortunes of coconut crops. Coconut account for 9.29% of other total income and 26.2% of the total agriculture income of the state. During the year 1950-51, Kerala contributed 65% of Indias total coconut production. But over the years, its share big the total national output. In Kerala there are many coconut oil extraction industries

throughout the state. Edible oil sector has been one of these commodity sectors that have been in news through out the year. In fact every now and then the industry has been pleading the government for protection from cheap imports.

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A study on Market Potential demand of coconut oil

2.2 COMPANY PROFILE


The Kerala karshaka sahakarana federation limited(KERALFED) registered in the year 1987as an Apex body in co operative sector is to implement as integrated coconut production, procurement, processing and marketing projects, founded by European Economic Community with a financial component contributed by the state govt. of Kerala. The primary objective of KERAFED is to organize coconut growers b bringing them under the co-operative umbrella and to provide them with supplies and services to augment their income base by increased productivity and value addition. This is proposed to be achieved through an integrated system of production, procurement, storage, processing, product

diversification and marketing of coconut and coconut products and acceptable to consumes on a sustained basis. On the production enhancement side KERAFED co-ordinate and carries out extension activities such as laying out demonstration forms, farmers training of officials, exhibition, seminars, distribution of leaflets and bulletins and ensure supply of production input. At present about 50% of the milling copra produced in Kerala is diverted for milling to units in Bombay, Calcutta and Tamil Nadu. UP country millers there for decide the price of copra and coconut in Kerala. Thus the coconut farmers, majority of them small and marginal in Kerala are
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A study on Market Potential demand of coconut oil

reeling under the strangle of hold of powerful up country trade cartels that consistently manipulated market condition and dictate price trades to their advantage. To overcome this KERAFED aims to procurement of 50 to 60% of total coconut/ copra produced in the state which will be produced at its own processing units are marketed. This along with product diversifications activities will enable KERAFED to become the price setter of coconut and coconut products in the company. All of the activates on production enhancement, procurement and marketing of coconut/ copra from producers are proposed to be carried out through 900 selected primary agriculture credits. Co-operative societies which from the grass root level functionaries of KERAFED. Co-operative Development services from an integral part of the activities of the federation, Education of co-operative personnel, assistance for processing, storage and management alone the strengthening of share capitals base to augment trading capability are some of the co-operative development activities. For effecting functioning the state standard divided into three regions. The southern region consists of the revenue districts. Trivandrum, Kollam, Pathanamthitta and Alappuzha. The northern region consists of Malappuram, Kozhikkode, wayanad, kannur, Idukki, Eranakulam, Thrissur and palakkad district. 300 primary agricultural credit co-operative societies in each region are made members of the federation to undertake production, procurement and marketing activities at the farmers level.
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A study on Market Potential demand of coconut oil

For processing and product diversification, each region will have one processing plant with processing capacity of 200 tonnes of copra per day. The processing plant in the central region will have, beside a solvent extraction units and vegetable oil refinery.

Vision & mission


Motto Enlistment of coconut farmers. Providing healthy coconut oil to consumers Vision Being the leader of best quality coconut oil. It has a vision to provide best value to the coconut farmers healthy oil to the consumers. Mission Being No.1 producer of best quality coconut oil. It aims the following areas. Business Customer relation Innovation Social sector Business leadership

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A study on Market Potential demand of coconut oil

Attain rapid growth with cost consciousness both in copra & coconut oil. Consumer focus Focus on quality customer delight at all time. Innovation Research on quality customer delight at all time. Social sector initiatives It is the leading social organization with commitment to the farmers as well as consumers.
THE OBJECTIVES OF KERAFED

To reduce edible oil imports. To provide an impulse effect on internal production of coconut. To develop the agricultural potential of Kerala state. To strengthen the co-operative movement. To secure the marketing of coconut and its by-products. Thereby assuring economic prices to the growers. To establish and manage infrastructure facility for production and supply of inputs and processing, manufacturing and marketing of products and by products of coconut palm.

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A study on Market Potential demand of coconut oil

To undertake research and development activities on production, processing and marketing.

Market share
Kera is proud to be patronized by millions as the tastiest of all cooking mediums and the most ideas hair oil. Truly the colour of gold and smell of yore, kera enjoys an undisputed plurality of the market share in Kerala-a-feat achieved by ultimate customer satisfaction. A permanent place in the hearts of housewives, chefs and good looking Indians.

Farmer Friendly Organization


For over 29lakh coconut farmers in the state, kerafed has been a beacon although, offering them attractive support prices for coconut and copra during unfavorable market condition. Procuring copra under the price support scheme on behalf of NAFED, Government of India and rendering value added services to enhance their earnings through improved productivity, and by assisting them in production and procurement. Apart from these, the federation organizes periodic extension activities to help farmers, like publication farms, training campus, exhibitions, seminars and publication and distribution of bulletins and literature on coconut farming.

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A study on Market Potential demand of coconut oil

Also kerafed reimburses the expenses for establishing copra driers, through the primary agricultural co-operative societies.

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A study on Market Potential demand of coconut oil HOW KERAFED FUNCTIONS

For effective and efficiently carrying out the administrative and operational practice on a day by day basis, Kerafed sees its state of abode as three Northern, central and Southern regions. Each region has around 300 primary agricultural credit co-operative societies functioning and marketing initiative.

Plans for Expansion and Growth


Not resting on the laurels, the thought process is already at work at Kerafed. How to grow future and expand and diversify and.. Plans are afoot to enter into the field of producing highly demanded coconut related products like desiccated coconut, coconut creams, bottled tender coconut water, coconut milk and confectionery substances, cosmetics like herbal hair oil; activated charcoals, shell charcoal and shell powder for industrial use; and coir board and coir pith. The good will of kerafed through kera, it is hoped can be thus employed to conjure never domains. Also in offing are plans for setting up a solvent extraction unit an oil refinery in the southern region.

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A study on Market Potential demand of coconut oil

PRODUCT PROFILE

Kerafed is the single largest procurer of coconut /copra produced in Kerala .A massive daily effort undertaken at the door steps of the farmers and involving primary agricultural co-

operative societies , spread all over the state .This direct interaction
eliminating middlemen result in the entire benefits being accrued to the farmers . And only the very best of the raw material thus sourced goes

into the making of KERA.


The products which are mainly produced in kerafed are: 1. Kera Oil The oil is packed in a number of tins, cans and bottles . a. b. c. d. e. f. 15kg tin 5 kg can 1 liter PET (poly ekylene teri-thalate)bottle 1 Liter pouch 500ml PET bottle 500ml pouch

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A study on Market Potential demand of coconut oil

2. Kera Gold This oil is mainly exported in the foreign countries like Dubai .This is specially processed oil from selected cups of copra which has got below 0.5 FFA(Free Fatty Acid).This is the one factor why it is been exported 3. Kera Kesh This product is hair oil which is produced by mixing Kera coconut oil with selected herbal extracts. Out of the these products Kera oil is the only product that is been continuously produced .The customers demand for this product is also high. 4. Kera popular and Agmark These are to important products of Kerafed. Kera agmarks can be get in one litter packs and Kera popular is available 500ml, 5kg, 1000ml pochers 5. Copra Cause This is the cake from the oil extraction process .The sale of a cake is made when the stock reaches at a particular level. The sale is made to a person who quotes highest price .This is sold in sacks \ bags .

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A study on Market Potential demand of coconut oil

COMPETITORS The main competitors of Kerafed are KPL Shudhi, KLF Nirmal, Parachute, Shalimar, TATA products etc. KPL shudhi Started in 1941, KPL Oil Mill has a rich tradition in the coconut oil production and marketing in the country. Always striving hard to maintain high quality standard in the industry, KPL products undergo strict verification process before it reaches the end consumers. KPL Oil Mill captured the coconut oil market with its longstanding brand named KPL shudhi Coconut Oil and has ever since introduced innovative products in the market using state -of-art manufacturing facilities . The company has introduced diverse products in the market like KPL shudhi gingelly Oil KPL shudhi plus ,KPL shudhi gingelly Oil , KPL coconut oil milk powder .KPL products have presence in diverse markets in the country like Kerala , Tamilnadu , karnadaka ,Mumbai ,Delhi and so on. KLF Nirmal With a history of more than 60 years in the edible oil industry ,Nirmal is among the top selling brands of coconut oil in the country .Adhering to the highest quality parameters from copra procurement through processing to packaging, Nirmal is synonymous with whats pure ,whole some and healthy in edible Oils. With a state-of the art extraction and packaging plant located at Iringalikuda in Thrissur District of Kerala, Nirmal produces high grade coconut oil and sesame (Gingelly) Oil.
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A study on Market Potential demand of coconut oil

Parachute Manufactured by Marico Industries Limited ,Bombay has a good market share in the coconut oil business in India .The annual turn over of the company is high .In northern states sales is higher when compared to the southern states . Shalimar Coconut Oil Shalimar chemical works Limited was incorporated in may 17 1945 as private ltd company and in present days it is one of the leading FMCG organizations in India having range of brands like Shalimars coconut oil , Shalimars chief coconut oil etc. The organization has expanded its sales network all over India through its sales branches and developed a legend of its quality standard. Nihar Nihar was launched in 1950s as Tata oil, a product of the Tata oil mills company Ltd. Nihar coconut oil is a brand of pure coconut oil that has used the platform of purity to become the market leader in the eastern region. The brand is particularly strong in the states of Bihar and Jharkhand. Nihar coconut oil speaks to young mothers whose lives revolve around their families. Aware and educated, they take great pride in shouldering their family responsibilities, and want to buy only the best for their family. spices , Shalimars mustard oil , Shalimars popular

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A study on Market Potential demand of coconut oil

Figure 2.1 ORGANIZATION CHART

Managing Director
Director project

Marketing Manager

Finance Manager

Manager CDS

Administrativ e Officer Junior Manager

Plant Manager

Assistant Manager

Assistant Manager

Confidential assistant

Junior Manager

Accountant

Staff

Staff

Area sales Manager

Cashier Staff

Asst. Manager (Mechanical & Production

Junior Mangers (Quality Control)

Sales officer Supervisor (Production Material) Shift-in Charge Shift-in Charge (mill) Supervisor (Maintenanc e) Supervisor Lab

Field staff

(filling )
Supervisor ( Filling)

Analyst Supervisor (Mill) Operator

Clerks

Godown Packing Material

assistant
Technicians

Workers

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A study on Market Potential demand of coconut oil

DEPARTMENT
KERAFED as whole has got the following departments Production department Marketing department Quality control department Finance department Administrative department

Production Department
The actual production of oil takes place only in Karunagappally oil complexes. This production function is controlled by the plant manager and by the shift manager. The core of the production lies in KERAFED which is the single largest procurer of coconut / copra produced in Kerala. A massive daily effort undertaken at the doorsteps of the farmers and involving agricultural co-operative societies spread all over the state.

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A study on Market Potential demand of coconut oil

Marketing Department Figure 2.2


STRUCTURE OF MARKETING DEPARTMENT

Marketing Manager Assistant Manager Junior Manager Area sales Manager Sales officer Field staff Clerks

KERAFED has it all an aggressive marketing strategy, energetic sales team with an insight into the future, tremendous confidence gained from the past and reasonable ambitions for an unprecedented innings. Ahead. Kera is concurrently part of the biggest retail network-CSD, Ministry of defense oil seed co-operative like Karnataka Oil federation (kof ) Tamil Nadu Co-operative.
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A study on Market Potential demand of coconut oil

Human Resource Department Human resource department refers to a set of programs, activities of functions designed of carried out in order to maximize both employee and organisational effectiveness. According to Jucius, human resource refers to a whole consisting of interrelated, inter-department and integrity physiological, psychological, and sociological of ethical components. Thus human resource represents the quantitative and qualitative measurement of work force required in an organisation. The goal of human resource management is to help an organisation to meet strategic goals by attracting, maintaining employees and also to manage them effectively. The key word here perhaps it fit i.e a HRM approach seeks to ensure a fit between the management of an organisations employees, and the overall strategic direction of the company. Human resource management comprises several processes. Together they are supposed to achieve the above mentioned goal. This process can be performed in an HR department, but some tasks can also be outsourced or performed by line managers or other departments

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A study on Market Potential demand of coconut oil

Figure No. 2.3 STRUCTURE HRD Manager

Assistant Manager

Clerk

Peon

Quality Control Department Kerafed adheres to quality specification of a global standard stringently at all stages of production. The extend that only Grade. I Copra certified by the bureau of Indian Standard (BIS) is set aside for processing. Kerafed quality control laboratory meet A mark parameters confirm the purity of Kera. Kerafed employs strict quality control measure to ensure product superiority and purity.

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A study on Market Potential demand of coconut oil

Finance Department Kerafed is planning to do cost analysis in the field of procurement production and marketing. Special drive is made for the maximum procurement of Copra of goof quality in peak season and when the market price is lower, so that the more margins are gained. This department aims in proper management of finance as a resource to result in optimum utilization of the financial resources of the company. Functions of Finance Departrment To ensure prompt payment in terms of a) Suppliers of equipments, machinery, materials etc. b) Employees as per wage agreement. c) Statutory payment like sales tax, income tax, excises duty etc. 2. To receive all income due to company in time 3. To record all transactions as per reluctant Acts, statutes or law ensuing the Karas availability year round is reality. The product of Kerafed the Kera coconut oil distributes the products to the following area:

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A study on Market Potential demand of coconut oil

MARKET POTENTIAL
Market potential of coconut oil means the maximum possible sales of coconut oil in the market. The concept of market potential t is defined as the maximum demand response possible for a given group of customers within a well defined geographic area for a given product or service over a specified period of time under well defined competitive environmental conditions.
We will further split up this definition:

1. Market potential is the maximum demand response under certain assumptions (ultimate demand). 2. Relevant customer for the product and service. It is not merely the present consumer but also the potential consumer so that maximum possible demand is achieved 3. The geographic area for which market potential is to be determined should be well-defined 4. There should be a clear understanding about the product & service for which the market potential is to be estimated. 5. The time period for which market potential is estimated should be specific 6. Finally, a clear understanding of environmental & competitive conditions relevant incase of a particular product or service is also necessary
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A study on Market Potential demand of coconut oil

It is important to remember that the estimated market potential sets an upper boundary on the market size and can be expressed in either units and/or sales. Market potential consists of the upper limit of total demand which would theoretically be converged onat (infinite) rise of marketing

expenditures of all relevant providers Estimating the market or market potential for a new business or business expansion is critical in determining the economic feasibility of a venture. Estimating the market potential for a business is critical in evaluating its viability and provides an estimate of the maximum total sales potential for a given market. Estimating the market potential will determine if the market is large enough to support your businesses. Hence we get precise and reliable information in this area after conducting a market potential analysis

Market Potential Analysis


Understand market potential for a single store, network of stores or a new market Deploy resources effectively by ranking markets in priority order Forecast total opportunity in terms of number of customers and revenue potential

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A study on Market Potential demand of coconut oil

Estimate your market share deploy sales and marketing resources effectively.

ANALYSIS & INTERPRETATIONS


By classification and tabulation, the unwieldy data can be condensed in to few manageable and purposeful groups and tables so that further analysis, and interpretation become simple. While analysis, and interpretation of data, results in observation, analysis, conclusion, induction and deduction. Analysis of data means critical examination of the data for studying the characteristics of the object under study and for determining the patterns of relationships among the variables relating to it using both quantitative and qualitative methods. An interpretation is the outcome of the analysis in term of suggestion. Important statistical tools used in the study are:

1. Tabulation 2. Percentage Analysis 3. Bar Diagram 4. Pie Diagram

Tabulation

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A study on Market Potential demand of coconut oil

Tabulation is an orderly arrangement of data in rows and columns. It is a method of systematic presentation of data. It is a process between collection of data and its analysis. Percentage Analysis Percentage analysis used to find to the percentage of respondents from total number of respondents, respondents to each questions.
Percentage = No. of Observation Total No.of observation

Bar Diagram A bar diagram is simple to draw and easy to understand. Bar diagram consist of a series of bars of equal width. The bar diagram may be either horizontal or vertical. Pie Diagram Pie Diagram are used when the total and their divisions are to be shows together. The total is shown by means of a circle and the divisions by the sectors of the circle.

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A study on Market Potential demand of coconut oil

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A study on Market Potential demand of coconut oil

1. Are you a dealer of Kera coconut oil? Table No. 4.1 DEALERS OF KERA COCONUT OIL

Choice
Yes No Total

No. of respondent
50 0 50

Percentage
100 0 100

Source: - Primary Data

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A study on Market Potential demand of coconut oil

Figure No: 4 .1 DEALERS OF KERA COCONUT OIL

No 0%

Yes 100%

Inference: All the respondents were dealers of Kera coconut oil.

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A study on Market Potential demand of coconut oil

2. What is your opinion about the pricing of Kera coconut? Table No. 4.2
TO KNOW ABOUT PRICING OF KERA COCONUT OIL.

Opinion Very high Slightly High Reasonable Slightly Low Very Low Total

No. of respondent 31 17 2 0 0 50

Percentage 62 34 4 0 0 100

Source: - Primary Data

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A study on Market Potential demand of coconut oil

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A study on Market Potential demand of coconut oil

Figure No: 4 .2
TO KNOW ABOUT PRICING OF KERA COCONUT OIL.

70 62 60 50

Percentage

40 30 20 10 0

34

0
Lo w Lo w Ve ry

gh

Hi gh

Re as on ab l

Ve ry

hi

Sl

Opinion

Inference: It is observed from the above figure that 62 % of the respondents opined that pricing of Kera is very high, 34 % opined that pricing of Kera is slightly high.

Sl ig ht ly

ig ht ly

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A study on Market Potential demand of coconut oil

3. Are you satisfied with selling of the Kera coconut oil? Table No.4.3
TO KNOW THE SATISFACTION OF DEALERS OF KERA COCONUT OIL.

Opinion Highly Satisfied Satisfied Nuetral Dissatisfied Highly Dissatisfied Total

No. of Respondent 5 18 1 21 5 50

Percentage 10 36 2 42 10 100

Source: - Primary Data

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A study on Market Potential demand of coconut oil

Figure No: 4. 3 TO KNOW THE SATISFACTION OF DEALERS OF KERA COCONUT OIL.

45 40 35 30 percentage 25 20 15 10 5 0 Highly Satisfied Satisfied Nuetral Opinion


10 2 36

42

10

Dissatisfied

Highly Dissatisfied

Inference: Majority of the respondents opined that they are not satisfied with dealing dealing of the kera coconut oil is low. 36 % of the respondents opined that they are satisfied with dealing of dealing of kera coconut oil.

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A study on Market Potential demand of coconut oil

4. Do you agree suppliers replace the damaged product?

Table No.4.4
TO KNOW REPLACEMENT OF DAMAGED PRODUCT

Opinion Strongly Agree Agree Disagree Strongly Disagree Neither Agree Nor Disagree Total

No. Of respondent 13 15 16 6 0 50

Percentage 26 30 32 12 0 100

Source: - Primary Data

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A study on Market Potential demand of coconut oil

Figure No.- 4.4


TO KNOW REPLACEMENT OF DAMAGED PRODUCT

35 30 25 Percentage 20 15 10 5 0
Strongly Agree Agree
30 26

32

12

Disagree

Strongly Disagree

Neither Agree Nor Disagree

Opinion

Inference :It is observed from above figure that 32 % of the respondents were disagreed that suppliers are not replacing damaged products, 30 % agreed that suppliers are replacing damaged products.

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5. Which company is the main competitor of Kera according to your opinion? Table No. 4.5 To identify main competitors

Brands

No. Of respondent

Percentage

Nirmal

17

34

Gold

Kpl

Sabari

33

66

Other

Total Source: - Primary Data

50

100

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A study on Market Potential demand of coconut oil

Figure No: - 4.5 To identify main competitors

70 60 50 Percentage 40 30 20 10 0
Nirmal
0 0 34

66

Gold

Kpl

Sabari

Other

Brands

Inference: -

In above figure 4.5, 66 %of the respondents opined that sabari is the main competitor of kera coconut oil.

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A study on Market Potential demand of coconut oil

6. Do you give promised sales after service to kera coconut oil users?

Table No. 4 6 To know about promised sales after service

Opinion Yes No

No. Of respondent 38 12

Percentage 76 24

Total

50

100

Source: - Primary Data

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A study on Market Potential demand of coconut oil

Figure No: - 4 .6 To know about promised sales after service

24

76

Inference:It is observed from above figure that 76 % of the respondents opined that, they were give sales after services to customers.

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A study on Market Potential demand of coconut oil

7. Which is the most selling brand?

Table No. 4.7 To identify most selling brand.

Brands Nirmal Kera Kpl Sabari Other Total Source: - Primary data

No of Respondents 6 28 0 16 0 50

Percentage 12 56 0 32 0 100

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A study on Market Potential demand of coconut oil

Figure No: - 4.7 To identify most selling brand.

60 50 percentage 40 30 20 10 0 Nirmal
12

56

32

Kera

Kpl Brands

Sabari

Other

Inference:Majority of the respondents opined that Kera is the most selling brand, 32 % of the respondents opined that Sabari is the most selling brand.

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A study on Market Potential demand of coconut oil

8 In your opinion what is the main reason for increasing sale of kera?

Table No. 4.8 Reason for increasing sale of this brand

Factors Best quality Fair price Attractive commission Availability Other Total Source: - Primary data

No. of respondents 33 3 5 9 0 50

Percentage 66 6 10 18 0 100

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A study on Market Potential demand of coconut oil

Figure No: - 4. 8 Reason for increasing sale of this brand

70 60 50 Percentage 40 30 20 10 0

66

18 6 10 0
Best quality Fair price Attractive commission Availability Other

Factors

Inference:It is observed from the above figure 4.8 that 66 % of the respondents opined that best quality is the main reason for increased sales. 18 % opined that availability of Kera coconut oil. 10 % opined that attractive commission.

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A study on Market Potential demand of coconut oil

9 .do you agree that the advertisement affect the purchase decision of Kera coconut oil? Table No. 4. 9 Influence of advertisement

Option Agree Strongly agree Disagree Strongly disagree Neither Agree Nor Disagree

No of respondents 26 13 11 0 0

Percentage 52 26 22 0 0

Total

50

100

Source: - Primary data

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A study on Market Potential demand of coconut oil Figure No: - 4 .9

Influence of advertisement

60 50 Percentage 40 30 20 10 0

52

26 22

Agree

Strongly Disagree Strongly Neither agree disagree Agree Nor Disagree Option

Inference: -

It is observed from above figure that 52 % of respondents agreed that advertisement affect the purchase decision of Kera coconut oil.

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A study on Market Potential demand of coconut oil

10. Do you use coconut for consumption? Table No. 4. 10 Coconut oil users

Features Yes NO Total

NO. Of respondents 150 0 150

Percentage 100 0 100

Source: - primary data

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A study on Market Potential demand of coconut oil

Figure No: - 4 .10 Coconut oil users

100

Inference: All the respondents were coconut oil users.

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A study on Market Potential demand of coconut oil

11. Which brand you mostly preferred Table No 4.10 Most commonly used brand

Brands Kera Sabari Nirmal Kpl

No. Of respondents 86 34 20 10

Percentage 57.33 22.66 13.33 6.66

Other

Total Source: - Primary data

150

100

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A study on Market Potential demand of coconut oil

Figure No: - 4 .11 Most commonly used brand

70 60 50 Percentage 40 30 20 10 0 Kera Sabari Nirmal Brands Kpl 22.66 13.33 6.66 0 Other 57.33

INFERENCE: -

Kera is the most commonly used brand, 22.66% of the using SABARI,

respondents

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A study on Market Potential demand of coconut oil

12. What is the monthly consumption of Kera coconut oil? Table No.4.12 Estimated consumption

Opinion Less than 2 Kg 2 3 Kg 3 4 Kg 4 -5 Kg 5 above Total Source: - primary data .

No. Of respondents 33 21 80 12 4 150

Percentage 22 14 54 8 2 100

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A study on Market Potential demand of coconut oil

Figure No : - 4 .12 Estimated consumption

60 50 Percentage 40 30 20 10 0 Less than 2 Kg


22 14

54

2 3 Kg 3 4 Kg 4 -5 Kg

5 above

Opinion

Inference: - Most of the respondents use 3-4 kg and less than 2 kg of coconut oil per month. Only 14 % respondents consumed 2 -3 kg of the Products. Approximately 8 % of respondents used 8 % kg per month

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A study on Market Potential demand of coconut oil

13. Do you agree advertisement helps in building brand popularity?

Table No. 4. 13 Influence of advertisement

Opinion Agree Strongly agree Disagree Strongly disagree Neither Agree Nor Disagree Total Source: -Primary data

NO. Of Respondents 88 62 0 0 0

Percentage 59.6 41.3 0 0 0

150

100

Figure No : - 4 .13 Influence of advertisement


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A study on Market Potential demand of coconut oil

70 60 Percentage 50 40 30 20 10 0

59.6 41.3

Agree

Strongly Disagree Strongly agree disagree

Neither Agree Nor Disagree

Opinion

Inference: It is observed from the above figure 4.13 that 59 % of respondents agree that the advertisement helps in building brand popularity and remains 43 % strongly agreed that advertisement helps in building brand popularity.

14. Do you influence any of the following before making purchase decision?

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A study on Market Potential demand of coconut oil

Table No. 4 .14 Come to know from

Service Retailer Display Printed media Well wishers TV advertisement Other Total

NO. OF respondents 67 21 16 43 3 150

Percentage 44 14 11 29 2 100

Source: - primary data

Figure No: - 4 .14 Come to know from

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A study on Market Potential demand of coconut oil

50 45 40 35 30 25 20 15 10 5 0
ay et ai le rD is pl

44

Percentage

29

14 11 2

m ed

lw is

Pr in te d

W el

Service

Inference:Most of the respondents come to know about Kera coconut oil through retailers display, also TV advertisement play an important role in promotion.

15. State frequency of buying of Kera coconut oil? Table No. 4 15 Frequency of purchasing Kera coconut oil

Frequency

NO. OF respondents

TV

ad v

er tis

em en

Percentage
62

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O th er

ia

he rs

A study on Market Potential demand of coconut oil

Regular Occasionally Seasonal Total Source: - primary data

123 15 12 150

82 10 8 100

Figure No: - 4 .15 Frequency of purchasing Kera coconut oil

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A study on Market Potential demand of coconut oil

90 80 70 60 50 40 30 20 10 0

82

Percentage

10

Regular

Occasionally Frequency

Seasonal

Inference: In the above figure 4.15, 82 % of the respondents opined that they used Kera coconut oil regularly. 10 % of the respondents opined occasionally.

16. What is the quality perception about the Kera? Table No.4.16 Quality perception
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A study on Market Potential demand of coconut oil

Opinion

NO. Of respondents

Percentage

Very Good Good Average Poor Very poor Total

42 97 11 0 0 150

28 64 7.3 0 0 100

Source: - Primary data

Figure No: - 4 .16 Quality perception

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A study on Market Potential demand of coconut oil

70 60 50 40 30 20 10 0

64

Percentage

28 7.3 0 0

Very Good

Good

Average
Opinion

poor

Very Poor

Inference:Majority of respondents agreed that the quality of KERA is good.

17. Why do you depend other brands? Table No.4 .17 Reason for choosing other brands
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A study on Market Potential demand of coconut oil

Opinion Lack of availability Poor satisfaction Depend on usage Unaffordable price Other Total

No. Of respondents 72 18 18 40 2 150

Percentage 48 12 12 26.5 1.3 100

Source: - Primary data

Figure No: - 4 .17 Reason for choosing other brands

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A study on Market Potential demand of coconut oil

60 50 Percentage 40 30 20 10 1.3 0
Lack of availability Poor satisfaction Depend on usage Unaffordable price Other

48

26.5

12

12

Opinion

Inference:-

Majority of the respondents using other brands mainly due to non availability .26.5 % due to unaffordable price and 13.33 prefer other brand because of its depend on usage.

FINDINGS
All the respondents were the regular dealer of Kera.

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A study on Market Potential demand of coconut oil

Most of the respondents opined that pricing of Kera coconut oil is very high. Majority of the respondents were not satisfied with selling of Kera coconut oil. It is found that suppliers were not replacing damaged products. 66 % respondents opined that Sabari is main competitor of Kera coconut Oil. It is found that 76 % respondents were gave sales after services to Kera coconut oil customers.

Most of the respondents opined that Kera is most selling brand. It is found that 66% of respondents opined that best quality is the main reason for increasing sales of Kera coconut oil In this study it is clear that the advertisement play very vital role on purchase decision of kera coconut oil. Most of the respondents prefer kera branded products

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A study on Market Potential demand of coconut oil

Majority of the respondents were using 3 4 kg and less than 2 kg of the product per month. Majority of the respondent agreed that advertisement helps in building brand popularity of Kera. Most of the respondents come to know about the brand through retail displays and TV, advertisement also playing an

important role in the promotion of the product.

Most of the respondents buying Kera coconut oil regularly. Majority of the respondents opined that quality of kera is good Majority of the respondents opined that lack of availability is the main reason for purchasing of other brands.

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A study on Market Potential demand of coconut oil

SUGGESTIONS
Most of the respondents were dissatisfied with the exchange of damaged product. Thus the company must provide facility of exchange of damaged products. Most of the respondents were not satisfied with dealing of Kera coconut oil. Because of they wont enough profit by selling of Kera coconut oil. So the company must provide more commission to the dealers of the kera coconut oil. Today there is tough competition existing in the coconut oil industry, Sabari, Nirmal is the leading competitors of KERA. In order to improve the position it is better to give more discounts, reduction or any other offers. The company must take necessary steps to increase the availability of products.
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A study on Market Potential demand of coconut oil

CONCLUSION

From this study it is observed that KERA coconut oil is apart from other brand but the respondent have a strong feeling that the KERA over

priced . So the company can make the price more competitive by reducing it. In order to improve the position it is better to give more discounts, price reduction or any other offers and the company must ensure the timely availability of the product. The dealers are not satisfied to sell kera because of them wont get enough profit by selling of kera coconut oil. KERA shall be concentrated in advertisement and other promotional activities, which may help the company to get the top in the market priced. Today there is a tough competition existing in the coconut oil industry , Sabari ,Nirmal, are the leading competitors of kera coconut oil.

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A study on Market Potential demand of coconut oil

BIBLIOGRAPHY

Philip Kotler, Marketing Management,Eleventh EditionPearson Education, First Indian Reprint, 2003. Kotler Philip & Armstrong Gary, Principles of Marketing, Publisher Pearson Education, Tenth Edition, 2004. Kothari C.R, Research Methodology Methods and Techniques, New Age International Publisher,New Delhi, Reprint Edition, 2004.

Websites www.kerafed.com

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